February 2, 2007 (PLANSPONSOR.com) - The Idaho state
legislature is considering a measure that could force the
Public Employee Retirement System of Idaho (PERSI) to
withdraw $41 million in investments tied to oil-rich Sudan to
protest the violence in Darfur.

The $10.7 billion fund, whose officials stand
against the legislation, currently holds investments in
Chinese, Brazilian, Swedish, French and British energy
companies that have relations with Sudan, according to
the Associated Press. U.S. sanctions on Sudan have
kept out American companies since 1997.

The legislation is not aimed at companies “whose
primary benefit goes to civilians,” but at companies
whose oil payments are supporting the government in
Khartoum and would not mean shedding all of the $147.3
million invested in European, Asian and South American
companies with links to Sudan, the wire services
reported.

Like others who have fought against divestment
of pension investments, PERSI officials warn that
pulling the investments would be too complicated and have
little of the expected impact on the conflict
there.

The investment in companies dealing in Sudan have
proved lucrative, earning $81 million on $65 million in
investments, Alan Winkle, PERSI’s director, told the AP.
If the divestment measure passes, the state would have to
sell shares in the following:

Chinese companies Petrochina and Sinopec
Shanghai Petrochemical,

Alstom, a French turbine maker;

Lundin, a Swedish energy exploration
company;

Petronas, a Malaysian oil and gas company;
and

Britain’s Rolls Royce Group.

“There was no support for the divestment of the
assets in PERSI,” Winkle told the AP. “It’s not
that we are unsympathetic to what’s happening in Sudan.
It’s a horrendous action. It’s just unconscionable. But
the board is bound to make professional investment
decisions, regardless of what our personal feelings may
be.”

Other states and pension funds have passed similar
measures to pull their public pension investments from
companies tied to the country.